Takeaways from corruption prevention approaches in Malawi’s mining sector: Lessons from a landmark case

Speakers: Jimmy Katembo Mtafya, Acting Chief Corruption Prevention Officer at the Anti-Corruption Bureau (ACB), Patricia Chizotera Mkandawire, Acting Principal Investigations Officer, Anti-Corruption Bureau of Malawi, Leonard Mushani, Secretariat Manager, MWEITI.

Moderator: Dr Amanda Cabrejo le Roux, Deputy Director, Green Corruption, Basel Institute on Governance.

Mining in Malawi currently accounts for less than 1% of gross domestic product, but the country aims to raise the sector's share to 10% by 2030. Against this backdrop, Jimmy Katembo Mtafya, Acting Chief Corruption Prevention Officer at the Anti-Corruption Bureau (ACB), outlined Malawi's legal and institutional framework and the Bureau's prevention mandate under the Corrupt Practices Act.

This Minerals Corruption working group session explored the ACB’s investigation into bribes allegedly paid to secure the renewal of a granite mining licence in Chitipa, Malawi. The Ilomba mine case was first brought to light by civil society members of the Malawi Extractive Industries Transparency Initiative (MWEITI), after a recording of officials discussing the licence outside normal channels went viral. Civil society members then requested an investigation, and MWEITI referred the matter to the ACB in December 2020.

The investigation uncovered not only alleged bribery, but also potential money laundering and systemic weaknesses in the licence renewal process. Its ripple effects have since driven wider prevention measures, including a new MWEITI anti-corruption strategy, strengthening of institutional integrity committees (IICs) at the Ministry of Mining and the Malawi Mining Regulatory Authority, and improvements to the mining licences approval process.

Patricia Chizotera Mkandawire, Acting Principal Investigations Officer at the ACB, walked participants through the landmark investigation and how it led to a broad response from authorities including wider corruption prevention reforms. Leonard Mushani, Secretariat Manager of MWEITI, described how the case prompted the design of MWEITI dedicated anti-corruption strategy and closer institutional ties with the ACB.

Moderated by the Basel Institute's Dr Amanda Cabrejo le Roux, speakers shared first-hand insights on how enforcement and prevention can reinforce each other, and what can happen when civil society speaks up and institutions respond.

Key takeaways

• Civil society vigilance can trigger enforcement when a channel exists to share concerns.

A recording shared widely on social media was taken up by civil society members of MWEITI Multi-Stakeholders Group (MSG). The MWEITI MSG then wrote and referred the case to the ACB, leading to a formal investigation.

• Enforcement and prevention approaches reinforced each other.

The investigation exposed systemic weaknesses and led to a recommended systems review of licence approvals, the strengthening of institutional integrity committees (IICs) at the Ministry of Mining and the Malawi Mining Regulatory Authority, and closer MWEITI–ACB collaboration.

• Concentrated decision-making often means high discretion and potential corruption risk.

Licensing decisions had rested with too few individuals, and the ACB recommended that approvals go through a committee rather than one person.

• Licence renewals need substantive checks on community consent, tax compliance and corporate social responsibility.

The case exposed weak verification of all three, and participants noted that consultation requirements can too easily become a box-ticking exercise.

• EITI platforms benefit from agreed procedures for handling corruption allegations.

MWEITI had none when the case arose. The dispute within its multi-stakeholder group led civil society organisations to withhold their approval of an EITI report. The MWEITI champion (the Minister of Finance) together with the Minister of Mining and the EITI International Secretariat, helped to mediate before the case was referred to the ACB.

• Sustainable prevention needs dedicated resources.

Malawi’s national anti-corruption strategy directs ministries, departments and agencies to allocate a minimum 1% of their annual budget to tackle corruption via their institutional integrity committee, which is a unique national commitment

• Emerging risks need attention as the sector grows.

Speakers named illegal mining and smuggling in a “silent gold rush”, licensing corruption and contract kickbacks, beneficial ownership secrecy concealing politically exposed persons and under-declaration of revenues. The ACB is encouraging for an inter-agency law enforcement approach, saying it cannot achieve much alone.